6.Short-term investments have an original cost of $2,500 and a market price of $3,000 at December 31, 2010. At what amount would the investments be measured on the December 31, 2010 balance sheet?
7.Accounts receivable have a face value of $10,000 and estimated net realizable value of $8,000 on December 31, 2010. At what amount would the accounts receivable be measured on the December 31, 2010 balance sheet?
8.Equipment with an original cost of $50,000 has a fair market value of $65,000 and accumulated depreciation of $15,000 on December 31, 2010. What amount would the December 31, 2010 balance sheet show as the equipment’s net book value?
9.On December 1, 2010, Karr Company purchased inventory for $55,000. On December 31, 2010, the replacement cost of that inventory is $57,000. At what amount would inventory be measured on the December 31, 2010 balance sheet?
10.On October 1, 2010, $24,000 of annual magazine subscriptions were sold by Kitchen Design Magazines. The subscribed magazines are delivered on the first day of each month beginning on October 1, 2010. The total cost of the subscribed magazines is $6,000, equal to $500 per month. Determine the amount of revenue and the cost of the magazines to be recognized during 2010.
11.On October 1, 2010, $36,000 of annual magazine subscriptions were sold by Motocross Monthly Magazines. The subscribed magazines are delivered on the first day of each month beginning on October 1, 2010. The total cost of the subscribed magazines is $15,000 or $1,250 per month. Determine the amount of revenue and the cost of the magazines to be recognized during 2010 and 2011, respectively. How much profit will the company recognize during 2010 and 2011?